Uber Announces Pilot Program Allowing Drivers To Cash Out Earnings Fast
Uber Technologies Inc. announced this week their move to give their drivers option to cash out their earnings as soon as they need it, anywhere, anytime.
In their press release, the ride-hailing firm unveils the pilot program called Instant Pay. The service is currently available for San Francisco drivers where they have to sign up for a bank account with Green Dot Corp's GoBank. Service charge usually amounts to $8.95 a month but it comes free if account holders can make a deposit once every six months. Applicants, if approved, will receive their card in a matter of 7-10 days. The card can be used in store or for cash withdrawal through most of the ATMs nationwide and is free of charge.
Instant Pay is basically Uber's response to Lyft's, its competitor in the transportation industry, paying system, Express Pay. The latter's program has been in use for three months already by 35 percent of its drivers, a report from Re/Code said.
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David Rust, director of operation strategy, revealed to the publication that their company has already paid about $40 million in driver earnings in the last 30 days.
"With any product that launches, if one-third of the entire user base is using it, it is a resounding vote of confidence," Rust was quoted as saying. "This is unlike any uptick in utilization that we've seen with products we've launched previously."
Lyft's program, meanwhile, requires drivers to have at least $50 standing balance before they can cash out. Each transaction charges them 50 cents. It is, however, less hassle as the money, which is processed via payments company Stripe, goes directly to the driver's chosen bank accounts.
Both services are geared towards the convenience of their respective drivers. Instant Pay, however, gives opportunity for drivers who don't have a bank account in the first place. GoBank seldom check credit rates and typically approve applications quickly.
For Lyft's case, drivers need not to undergo the hassle of opening a new bank account as their current account is more than enough to accommodate the feature.
